What I Spent On May 2016
That’s a total of $3,062. The majority of it was on decorating my place. I should be done though and it’s really comfortable now.
To generate a passive income of $3k a month after taxes I would need to use the 300-rule. Which would give me roughly $918,000. That’s how much I would have to invest in the current investment scene in order to get the expense above.
The advantage to this is that the $918k would be a fairly conservative estimate. The money could still continue to grow or it could dwindle for a while and recover.
Every person’s circumstances are different, I’ve talked about this a lot. If you know that would will be doing some income-generating work then of course you wouldn’t need the whole $918k.
That’s why I like to mostly consider ‘base expenses’ such as housing, groceries, utilities and necessary insurances.
It’s important to me that I am consciously spending my money. My savings is my ticket to financial freedom. Practically, this means I would regularly scrutinize what I’m spending money on.
I totally get the opposite argument of just letting it go, fuck it, live your life man! But I do believe I vote with my money. I believe my income doesn’t simply serve the purpose to let me buy the things I want.
If I don’t like the global crisis created by our dependency on fossil fuels then I will live without a car. I will locate my condo/house close to work, a grocery store and public transportation.